The Bulk Energy Storage and Transportation Company Limited (BOST) has reported impressive financial results from 2019 to 2023, generating a total revenue of GH¢22.7 billion and achieving profits of GH¢881 million. This significant turnaround can be attributed to robust governance and efficient operational practices implemented by the company’s Board and Management. Dr. Edwin Alfred Provencal, the Managing Director, shared these successes during a news briefing hosted by the Ministry of Information in Accra, emphasizing BOST’s mandate to develop the necessary infrastructure for the storage and transportation of petroleum products across Ghana.
Upon Dr. Provencal’s assumption of leadership in 2018, BOST was grappling with substantial debts amounting to $624 million owed to foreign suppliers and GH¢384 million to local ones. However, through careful financial management, the company has managed to pay off all these debts and now reports a profit. Over the years, BOST also increased its revenue-earning assets dramatically from 18% in 2017 to an impressive 98% today. This improvement includes the operation of 51 farm tanks with a combined capacity of 361,000 metric tonnes of petroleum reserves, equivalent to six weeks of supply.
BOST has faced and navigated various challenges, but its efforts to address financial liabilities have resulted in significant achievements, including the payment of GH¢47 million in long-standing tax arrears to the Ghana Revenue Authority (GRA). Alongside addressing debt issues, the company focused on boosting its revenue through the completion of key infrastructure projects, including the Tema to Akosombo and Bolga to Buipe petroleum pipelines. Furthermore, the implementation of a Leak Detection System has been pivotal in mitigating illegal siphoning of fuel from its pipelines, thus fortifying the security of its fuel infrastructure.
The success of BOST highlights the importance of strong corporate governance and operational discipline. Dr. Provencal attributes the company’s financial turnaround to the strategic management approaches adopted by the Board and Management. By achieving 100% debt repayment while enhancing operational capabilities, BOST is demonstrating a significant commitment to financial transparency and growth. As the MD pointed out, the accomplishments serve as a roadmap for other Ghanaian state-owned enterprises aspiring to achieve similar levels of success.
BOST’s continuous progression toward sustainability extends beyond mere financial metrics to encompass broader energy solutions for Ghana. The complete operation of its 361-kilometre oil pipelines and farm tanks has significantly contributed to its revenue generation capabilities, positioning the company as a reliable and integral player in the nation’s energy landscape. Dr. Provencal emphasized that BOST is evolving into a model enterprise, showcasing the benefits of a coherent strategic direction and solid governance practices.
In summary, the transformative journey of BOST over the past four years underscores its resilience and capacity for growth amid challenges. With ongoing initiatives aimed at enhancing its operational strengths and pushing for sustainability in energy solutions, BOST is not only fortifying its financial standing but also setting a benchmark for other state-owned entities in Ghana. Dr. Provencal’s leadership and vision are pivotal in steering BOST towards a promising future, ensuring it plays a crucial role in supporting Ghana’s energy needs effectively and sustainably.
